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Original-Research: Multitude SE - from NuWays AG
15.11.2024 / 09:06 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
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Classification of NuWays AG to Multitude SE
Company Name: Multitude SE
ISIN: MT0002810100
Reason for the research: Update
Recommendation: Buy
from: 15.11.2024
Target price: EUR 12.00
Target price on sight of: 12 months
Last rating change:
Analyst: Frederik Jarchow
Q3 with improved profitability // FY24 guidance confirmed; chg
Topic: Multitude reported a strong set of Q3 figures with improved
bottom-line and confirmed its FY24 EBIT guidance. Further, the company
announced to continue with a new CEO from FY25 onwards and provided a
guidance for FY25. In detail:
Interest income increased to EUR 65.1m (11% yoy, 1% qoq vs eNuW: EUR 68.3m),
thanks to strong growth in the SME banking to EUR 8.6m (4% qoq, 46% yoy, vs
eNuW: EUR 8.3m) and in the Wholesale Banking to EUR 3.5m (25% qoq, 152% yoy, vs
eNuW: EUR 2.8m). Consumer Banking topline improved only slightly by 4% yoy to
EUR 52.9m. The net loan book (NAR - including debt investments of EUR 101m) grew
to EUR 726m (4% qoq, 24% yoy, vs eNuW: EUR 720m).
EBIT jumped to EUR 18.9m (13% qoq, 57% yoy), mainly driven by credit losses
that decreased further to only EUR 21.5m (-10% qoq, 3% yoy, vs eNuW: EUR 26.6m)
or 33% of sales, while S&M, personnel and other operating expenses remained
stable. With interested expenses raising to EUR 12.8m (12% qoq, 99% yoy, eNuW:
EUR 9.6m), we should have seen the peak here for the moment, expecting lower
relative levels going forward. Still, EBT of EUR 6.2m (15% qoq, -2% yoy) is in
line with expectations (eNuW: EUR 6.6m), carried by the lower credit losses.
Overall, Multitude delivered another strong quarter thanks to further
significant improvements in the risk management, visible in declining credit
losses paired with ongoing tight cost control stabilizing OPEX. On the back
of the 1) strong NAR over all segments, 2) credit losses to remain on
moderate levels and 3) ongoing tight cost control, we see further meaningful
EBIT improvements. Hence, the confirmed EBIT guidance of EUR 67.5m looks
achievable. As interest expenses should have peaked in Q3, the newly
introduced net profit guidance for FY25 of 23m looks achievable as well
(eNuW: EUR 24.5m). Further, CEO and founder Jorma Jokela decided to step down
as CEO of the Group at year end to focus i.e. on M&A and hand over to Antti
Kuplainen (currently CEO of Multitude Bank) - a sensible move in our view.
For a growing, highly profitable, resilient and dividend paying company 4.6x
PEŽ25 looks dirt cheap. Consequently, we reiterate BUY with an unchanged PT
of EUR 12, based on our residual income model. Multitude remains a NuWays
Alpha pick.
You can download the research here: http://www.more-ir.de/d/31319.pdf
For additional information visit our website: www.nuways-ag.com/research
Contact for questions:
NuWays AG - Equity Research
Web: www.nuways-ag.com
Email: research@nuways-ag.com
LinkedIn: https://www.linkedin.com/company/nuwaysag
Adresse: Mittelweg 16-17, 20148 Hamburg, Germany
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Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss
bestimmter Börsengeschäfte.
Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben
analysierten Unternehmen befinden sich in der vollständigen Analyse.
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